One of the European Union‘s most ambitious projects is to achieve an intelligent energy transition resulting in a sustainable, competitive and secure energy system for all Member States. And to achieve this goal, one of the tools the EU uses is the implementation of energy regulations and legislation, including the well-known Energy Efficiency Directive.
In this article, we tell you what the EED is and how it affects your company’s regulatory compliance.
The objective of the European Energy Efficiency Directive
In 2023, the European Directive 2023/1791 defined yet a new target for energy efficiency: an 11.7% reduction in total energy consumption in the European Union. It also included the need to develop energy efficiency obligation systems in the countries. And the undertaking of energy audits and the use of energy management systems for large energy consumers, regardless of company size. And this is followed shortly after by the review of the Energy Performance Building Directive.
Previous to that, the initial steps of the Energy Efficiency Directive included:
- In 2012, the EU established an Energy Efficiency Directive (2012/27/EU) that determined a set of binding measures to help achieve a 20% energy efficiency improvement by 2020.
- In 2018, the EU noticed that the efforts that were made were not sufficient and amended the directive, publishing a new Energy Efficiency Directive (2018/2002). The initial target of 20% improvement in energy efficiency grew to 32.5% by 2030.
4 Key points of the European Energy Efficiency Directive
One of the key aspects of the EED is the energy efficiency first principle, by which efficiency is not a side consideration, but the main goal to be achieved. This has a cost impact and a productivity impact for Europe as a whole to stay competitive while being responsible towards decarbonisation.
Although the EED goes far beyond what we will explain in this article, there are two key aspects that we highlight:
Mandatory Energy Audits for High Energy Consumers
The previous directive already required energy audits in buildings, but the 2023 issue became stricter and makes regular audits mandatory for high energy consumers. The rule implies that all relevant organizations must have conducted their first energy audit by 11 October 2026. And after that, a regular process of energy audits is to be repeated every 4 years.
Energy Management Systems
Any organization with an energy consumption higher than 85 TJ per year will be required to have an Energy Management System in place. This involves any type of energy, not electricity alone. The deadline for this new requirement is 11 October 2027.
How can an EMS help you comply with the European Energy Efficiency Directive?
The use of technology as cloud-based solutions (SaaS) has become a fundamental instrument for achieving energy efficiency objectives. In particular, the software specialised in energy monitoring and analysis, as they are key to give the necessary support to companies when complying with the European Directive and its regulations.
For example, when carrying out energy audits, creating energy certification reports, or carrying out efficiency inspections of installations.
There are two categories of technologies that allow your company to properly analyse its energy consumption, efficiency, expenses and other variables:
- Hardware: Energy meters and other physical devices that allow the measuring of energy consumption, whether electricity, propane, water, carbon footprint, etc.
- Energy Management Software: The tools that will allow you to obtain very valuable information from your energy consumption data. Especially in the context of energy audits, and possible recommendations to improve efficiency, which will enable you to reduce costs.
Although the two work together, you don’t have to get them from the same supplier, they can be different to suit your business policies and preferences. However, when choosing your software or hardware provider, it’s highly recommendable to ensure that hardware and software can speak to each other. It’s the case of Spacewell, which integrates with numerous hardware brands to ensure you’re not locked with a single vendor.
